The first popular online streaming subscription platform, Netflix, was launched in 2007. In less than 10 years, not only has it grown into a multibillion-dollar company, there are now multiple competing services that have achieved similar success in the market. Online video streaming has become a dominant sector in the entertainment industry. What factors led to this rapid success?
Faster Internet Speeds
Video streaming is a very bandwidth intensive process. Over time, faster internet speeds have been required as video quality (and hence file sizes) have improved. Broadband internet is now widely available on a global scale thanks to services like hosting site Internet Vikings which provide a platform for high-speed internet and online gambling. This has led to an increase in demand for online video streaming since the technological infrastructure is available to support it.
Powerful Mobile Devices
The modern-day ‘average’ mobile device has more processing power than computers did ten years ago. Even budget models on the lower end of the price scale can handle online video streaming with ease. These devices have given online video streaming a unique selling point that can’t be matched by competing platforms – entertainment on the go. Being able to stream on multiple devices, whether, at home, in transit or just relaxing at a park has seen the popularity of online video streaming further soar.
Quality and Exclusive) Original Programming
Online streaming services have shifted their strategy from being platforms populated by third-party TV shows to producing their own exclusive content. In 2019, Netflix reportedly spent $15.3 billion on developing original programs from the various global markets it operates in. Netflix and Amazon’s Prime Video have already won multiple Emmy awards for original series that are exclusively on their platform. With more streaming services developing their own original TV series and documentaries, they will keep attracting more subscribers (and industry recognition) in the coming years.